Ripple CTO Enraged with FTX Customer Refund Issue: Details

Ripple’s chief technology officer (CTO) David Schwartz has commented on a case of an attempted funds withdrawal from the badly-reputed and non-functioning FTX crypto exchange shared by a former FTX user.

David Schwartz could not hold back his indignation and disappointment at this, and this is not the first time he has slammed FTX in his tweets. This, formerly one of the largest cryptocurrency exchanges, collapsed in November 2022 as its founder and CEO Sam Bankman-Fried was accused of defrauding its investors and taken into custody. He is currently doing his time in prison, while some users continue their attempts to retrieve their funds stuck in FTX wallets.

FTX rejects funds withdrawal request

Schwartz shared a tweet of an X user @cuntycakes123. The latter described his recent experience of attempting to withdraw his crypto from the defunct FTX trading platform.

The user shared screenshots of e-mails he received from the FTX customer support service. In those e-mails, FTX refuses to approve the requested funds withdrawal since the user’s bank statement shows figures that are much lower than the amount he requested to withdraw from the exchange.

@cuntycakes123 is now required to provide a statement from the bank that would match the amount of money held on his bank account to that requested by him for withdrawal from FTX.

The user summarized the situation by tweeting: “Apparently if you deposit all your money on ftx you don’t get any back now.”

David Schwartz’s reaction to that was quite emotional: “What, and I cannot stress this enough, the f***?!”

Last year in March, the Ripple executive announced in a tweet that he had also some crypto left on his FTX account. That was approximately the equivalent of $2,500, he did not provide any details.

Schwartz warns users against new FTX-related scam

In March 2024, David Schwartz got alerted on the emergence of a new crypto scam, whose masterminds pretended to be part of the FTX support service. The Ripple executive warned the community that those con artists took advantage of the mess with customers’ FTX compensation claims. The fraudsters urged them to connect their wallets to FTX via phishing links in order to “speed up” the claim process.

Schwartz urged the crypto community to exercise caution when receiving such e-mails.